Samsung apparently keeps 50 million unused phones in dealerships

Samsung apparently keeps 50 million unused phones in dealerships

Tech Highlights:

  • Oppo Find X5 Pro Camera unibody ceramic frame close up. Samsung may have overestimated consumer demand when it set a 2022 production target of 334 million at the end of last year. However, the unexpected slowdown has forced the company to drop targets to 270 million, per The Elec‘s source. With that revision, the company may have nearly 20% of its annual production stocks just sitting at distributors. In this case, a more normalized figure would be around 10% or 27 million devices.

  • Samsung has millions of products available for purchase. Evidently, Galaxy A series models make up the majority of these products. Shopping on a smartphone can be challenging, especially with the rising cost of living. However, producers are not immune to the ripple effects. A recent estimate claims that Samsung may have up to 50 million handsets in global distributor stockpiles that are eagerly awaiting orders. OPPO’s Find X5 Pro at Roland-Garros 2022 will provide inspiration on and off the court.

This inflated stock figure suggests that the global financial crunch affecting consumers is also diminishing demand and in turn, forcing Samsung to rethink its production figures for the remaining six months of 2022. Samsung reportedly slowed its monthly smartphone production targets by half in May, responding to the lower demand for devices. Surprisingly, it’s not the pricier Galaxy S22 series or Galaxy Z Fold 3 that are awaiting buyers. Instead, Galaxy A series devices make up the bulk of units yet to be sold, per the Korean outlet’s source. This further suggests that consumers could be considering other brands in the mid-range tier, hanging on to their devices a little longer, or extending their budgets to snag pricier devices. Traditionally, the Galaxy A series has been Samsung’s better sales performer.

It’s unclear if smartphone sales will pick up in 2022. If demand remains flat, Samsung will need to make space for its newer devices somehow. This could mean further production limits that could affect its latest and forthcoming lines.

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